Colombo equities started the weekly operations with negative returns on Monday amid sluggish activity seen among the investors. The market was up in the morning session but slide to close in negative column where the benchmark ASI declined to a nearly three week low of 7,244.40 with a drop of 56.89 points (-0.78%) to end at while S&P SL 20 index lost 14.45 points (-0.35%) to end at 4,101.43. The core index has declined 73.04 points or 1% in last two consecutive sessions (including today).

Today’s losses were mainly driven by the counters such as Trans Asia Hotel (closed at LKR 95.00, -5%), Ceylon Tobacco (closed at LKR 1,080.00, -1%) and Dialog Axiata (closed at LKR 11.80, -1.7%). Sri Lanka Telecom also affected negatively to the index performance as investors reacted to the profit decline of 37%YoY recorded for the December quarter. The counter closed at LKR 48.00, -1%.

Daily market turnover was two week low of LKR 642mn. John Keells Holdings positioned at the top of the turnover list with LKR 139mn supported by a single crossings where 0.3mn shares changed hands at LKR 204.50 per share. Regnis Lanka (LKR 76mn) and Distilleries (LKR 61mn) recorded next best contributions to the turnover.

Another two crossings were recorded in Distilleries (0.2mn shares at LKR 240.00 per share). The aggregate value of crossings represented 18% of the total market turnover.

Reflecting the lack luster trading session, out of the 256 stocks traded today, 127 stocks lipped, 72 gained while 57 remained unvaried. The cash map slightly improved to 41% from 40% in the last trading session. 05 counters reached 52wk high prices while 14 counters dropped to 52wk low prices.

Shares of Regnis Lanka gathered heavy investor preference during the session amid attractive dividend and favorable revenue growth of 163% recorded for the December quarter. Regnis Lanka declared the final dividend of LKR 7.00 per share today which translates to an attractive dividend yield of 9%. The counter reached to a 52wk high price of LKR 92.90 and closed higher at LKR 91.50, +12.7%.

Foreign investors turned as net buyers today with a net inflow of LKR 55mn after two consecutive days of net foreign outflows. Foreign participation was 25%. Net foreign inflows were seen in Commercial Bank (LKR 24mn), John Keells Holdings (LKR 23mn) and Millennium Housing Developers (LKR 9mn) while net foreign outflow was mainly seen in Hemas Holdings (LKR 9mn).

Singer Sri Lanka declared their final dividend of LKR 2.50 (DY 2%) per share.

Lanka Securities Research